ONEOK Partners LP
Overview: ONEOK Partners and its 3 operating segments
ONEOK Partners (OKS) is a master limited partnership (or MLP) engaged in gathering, processing, storing, and transporting natural gas and natural gas liquids (or NGLs) in the U.S.
Is ONEOK Positioned Well Enough to Continue Growing Its Earnings?
Of the analysts surveyed by Bloomberg, 12% rated ONEOK (OKE) a “buy,” and 76% rated it a “hold.” About 12% of the analysts rated it a “sell.”
How Dividend Increase Could Affect Williams Companies Stock
Williams Companies (WMB) opened ~2% higher on Tuesday, February 21, 2017, after it announced a 50% increase in dividends from $0.20 per share to $0.30 per share.
How a Fall in Fractionation Spread Affected MLPs Last Week
The Henry Hub-Mont Belvieu fractionation spread fell to $10.1 per barrel for the week ended October 16, 2015.
Targa Resources Partners: Top Midstream Loser on July 30
Targa Resources Partners (NGLS) was the top loser among midstream MLPs at the end of trading on Thursday, July 30. It fell 4.13% yesterday.
Key for Investors: The Fractionation Spread Rose Last Week
The Henry Hub–Mont Belvieu fractionation spread rose to $13.0 per barrel in the week ending May 13, 2016. The spread was $12.4 per barrel in the previous week.
How ONEOK’s Segments Are Expected to Have Performed in 3Q16
ONEOK (OKE) operates as a pure-play general partner of ONEOK Partners (OKS). To analyze OKE’s earnings levers, we need to look at OKS’s operating segments.
Enterprise Products Is Expected to Increase Distributions in 2015
Enterprise Products trades at a distribution yield of ~4.9%. One of the reasons for EPD’s relatively lower distribution yield might be its distribution coverage ratio.
ONEOK Partners Maintains Guidance for 2016
ONEOK Partners expects adjusted EBITDA of $1.9 billion for 2016 and DCF (distributable cash flow) of $1.4 billion for the year.
How Does ONEOK Partners’s Growth Benefit ONEOK?
At the current ownership level, nearly 70% of every incremental ONEOK Partners (OKS) adjusted EBITDA dollar flows to ONEOK (OKE) as ONEOK Partners distributions.
Dominion Midstream: Top Midstream Loser on Friday, July 24
Dominion Midstream Partners (DM) was the top loser among midstream MLPs at the end of trading on Friday, July 24. It fell 3.05%.
Higher Volumes Drive ONEOK’s 2Q16 Earnings Growth
ONEOK (OKE) reported its 2Q16 results on August 2, 2016, after the Market closed. Its 2Q16 analyst-adjusted EBITDA increased 15.2%.
Week Ended September 18: Rise in Fractionation Spread Affects MLPs
The Henry Hub–Mont Belvieu fractionation spread rose to $9.12 per barrel for the week ended September 18, 2015. The spread was $8.86 per barrel in the previous week.
ONEOK Stock Rose Compared to the Energy Sector Last Week
ONEOK (OKE) rose 4.4% for the week ending March 31, 2017. In comparison, the Energy Select Sector SPDR ETF (XLE) rose 2%.
Overview: ONEOK Partners’ natural gas pipelines segment
ONEOK Partners’ (OKS) natural gas pipelines segment owns and operates regulated interstate and intrastate natural gas pipelines and natural gas storage facilities.
Why Gathering and Processing MLPs Outperformed in 1Q17
Gathering and processing MLPs were the best performing MLPs in the first quarter of 2017. The subgroup rose 14.7%.
Will ONEOK’s 2Q16 Results Contribute to Its Outperformance?
ONEOK (OKE) has generated total returns of 86% so far in 2016. In comparison, KMI, OKS, and WMB have generated total returns of 35%, 40%, and -0.2%, respectively.
Energy Transfer’s 4Q16 Earnings Are Important for Investors
Energy Transfer has taken an important step to simplify its organizational structure by announcing the merger of ETP and SXL.
Commodity Prices Impact Midcoast Energy’s Operations
Midcoast Energy Partners’ (MEP) natural gas throughput volumes fell in 2Q15 compared to 1Q15 and 2Q14. The decrease was primarily due to the low commodity price environment for natural gas and NGLs.
Why ONEOK Partners expects ethane rejection to continue
Price differentials between ethane and natural gas have resulted in ethane rejection at most of ONEOK Partners’ natural gas processing plants. Ethane rejection is also being seen in customers’ gas processing plants that are linked to OKS’ natural gas liquids assets.
Analysts’ Recommendations for Williams Partners
At a broader level, ~50% of analysts surveyed by Bloomberg rate Williams Partners a “buy” and the remaining ~50% rate it a “hold.”
Must-know: ONEOK Partners’ segment-wise contract mix
Now that we’ve looked at various sources of margin across ONEOK Partners’ (OKS) business segments, let’s delve deeper into the margin mix within these segments.
ONEOK Partners: Natural Gas Liquids Segment Generates Most Income
The volume of NGLs transported on ONEOK distribution lines decreased mainly because of diminished optimization activity.
Enable Midstream: Top Midstream Gainer on Friday, August 7
Enable Midstream Partners (ENBL) was the top gainer among midstream MLPs at the end of trading on Friday, August 7. It rose 6.10%.
Amid the Fall in Crude Oil, ONEOK Ended Positive Last Week
ONEOK (OKE) rose 0.5% during the week ending March 24, 2017. In comparison, the Energy Select Sector SPDR ETF (XLE) fell 1.8% last week.
ONEOK Partners’ natural gas gathering and processing segment
ONEOK Partners’ (OKS) natural gas gathering and processing segment provides natural gas gathering, compression, treatment, and processing services to natural gas producers.
Must-know: Supply-related factors that affect ONEOK Partners
Natural gas, crude oil, and NGL (or natural gas liquid) supply is affected by several factors that could be supply related or demand related.
Why Gathering & Processing MLPs Outperformed Others in February
Gathering and processing MLPs In this article, we’ll analyze the performance of MLP subgroups in February 2017. Among these subgroups, the gathering and processing subgroup, which includes Williams Partners (WPZ), ONEOK Partners (OKS), and MPLX LP (MPLX), benefited from a slight recovery in drilling activity. Gathering and processing MLPs’ throughput volumes are directly linked to […]
Weakness in ONEOK Continues, Stock Fell 2.8% Last Week
ONEOK (OKE) fell 2.8% in the week ending March 17, 2017. In comparison, the Energy Select Sector SPDR ETF (XLE) fell 0.3% last week.
Which MLPs Could Continue Strong Distribution Growth in 2017?
Out of 117 MLPs, 37 managed to grow their distribution while 68 MLPs kept their distribution unchanged until 3Q16.
Oneok Stock Fell 1.7% Last Week, Underperformed Energy Sector
Oneok (OKE) fell 1.7% last week, which ended April 28, 2017. It has fallen 8.0% year-to-date.
Explaining the Rising US Natural Gas Inventories and Falling Prices
The EIA report for the week ending September 25 showed that US natural gas inventories increased by 98 Bcf, rising to 3,538 Bcf that week.
Must-know: Why ONEOK restructured its business, creating ONE Gas
Earlier this year, ONEOK (OKE) created a new stand-alone publicly traded company called ONE Gas (OGS), separating its natural gas distribution business into a separate dedicated company. The company believes that by having two separate companies, each of the companies will have a greater focus on its individual strategy, financial strength, and growth potential.
Energy Transfer Partners: 2Q15 Operating Results
In this series, we’ll look at Energy Transfer Partners’ 2Q15 operating results, contrast actual numbers against analyst estimates, and compare individual segment contributions.
MLPs or Upstream Companies: Where Should You Invest?
In addition to the attractive yields discussed previously, MLPs offer other benefits. The average beta of all Alerian MLP Index companies is 1.2.
Why MLP and 10-Year Treasury Yields Converged Last Week
US ten-year Treasury yields rose to close at 2.1% on October 9. They traded at a yield of 2% at the end of the previous week.
How a Fall in Fractionation Spread Impacted MLPs
The Henry Hub–Mont Belvieu fractionation spread fell to $8.10 per barrel in the week ended January 1, 2016. The spread was $10.60 per barrel in the previous week.
Why the Permian Basin is important for ONEOK Partners
From January 2007 to September 2014, crude oil production in the Permian more than doubled—from 0.84 million barrels per day (or bpd) to 1.72 million bpd.
Why ONEOK Partners acquires Permian assets from Chevron
On October 27, ONEOK Partners (OKS) announced that it agreed to acquire Chevron Corporation’s (CVX) natural gas liquids (or NGLs) pipeline assets.
Overview: ONEOK Partners’ natural gas liquids segment
ONEOK Partners’ (OKS) natural gas liquids segment provides natural gas liquid gathering, fractionation, transportation, marketing, and storage services to its producers.
Must-know: ONEOK Partners’ growth trends and strategies
Producers currently receive higher market prices for crude oil and NGLs (or natural gas liquids) compared to natural gas. So many producers have focused their drilling activity in NGL-rich shale areas rather than areas that produce dry natural gas.
High contract volume: A steady cash flow for Natural Gas Pipeline
The operating income for the Natural Gas Pipeline segment for 1Q14 was $55.1 million versus an operating income of $48.7 million in 4Q13, an increase of ~13%.
Could M&A Activity Pick Up for MLPs after 1Q17?
MLPs had a good start to 2017 in terms of M&A activity. The sector saw deals amounting to $27.6 billion in the first two months of the year.
A Look at Top Performing MLPs in February 2017
Top MLP gainers of February 2017 Southcross Energy Partners (SXE), which is involved in natural gas gathering and processing, was the top MLP gainer in February 2017. SXE, which was close to filing bankruptcy in 2016, gained 52% in February. However, it is still trading far below the levels it was trading at before the […]
ONEOK Aims for 10% Annual Dividend Growth over Next Five Years
On January 18, 2017, OKE announced its 4Q16 dividend of ~$0.62 per share, which remains unchanged since 3Q16.
Will ONEOK Meet Its Higher 4Q16 Earnings Estimates?
ONEOK (OKE) is scheduled to report its 4Q16 earnings on February 27, 2017. Analysts expect its EBITDA for the quarter to be $483 million, a 13% increase compared to $427.9 million reported in 3Q16.
ONEOK Acquires ONEOK Partners for $9.3 Billion
On February 1, it was announced that ONEOK will acquire all of the outstanding common units of ONEOK Partners for $9.3 billion in ONEOK common stock.
Why Oneok Was Downgraded after Stellar 2016 Market Performance
Oneok (OKE), the midstream C corporation GP (general partner) of Oneok Partners (OKS), was downgraded by Jefferies from “hold” to “underperform.”
Is Targa Resources Stock Set to Generate High Returns in 2017?
Of the analysts surveyed by Reuters, 60% recommend a “hold” for Targa Resources (TRGP) stock.
Targa Resources Stock More than Doubled in 2016: What’s Ahead?
Targa Resources has risen 115% in 2016. In comparison, ONEOK Partners has risen 54%, and Kinder Morgan has risen 42% during the same timeframe.
Which Companies Could Benefit from Higher Pipeline Exports to Mexico?
Natural gas imports by Mexico have increased over the last year, driven by higher usage of natural gas for power generation.
KYN and TYG: MLP Investing through Mutual Funds
TYG outperformed KYN over the three-year and five-year periods. On the other hand, KYN outperformed TYG over the past year.
Getting Familiar with MLP Contracts
In this article, we’ll look at types of MLP contracts for midstream MLPs. Midstream MLPs generally have fixed-fee contracts.
Are ONEOK’s Earnings Really Fee-Based?
ONEOK (OKE) has been making focused efforts to increase its fee-based earnings through contract restructuring in ONEOK Partners’s (OKS) Natural Gas Gathering and Processing segment.
Which Segment Drives ONEOK’s Growth?
ONEOK’s (OKE) Natural Gas Gathering and Processing segment’s 3Q16 EBITDA grew 33% year-over-year.
Must-Know: ONEOK’s Structure and Business
ONEOK increased its ownership in OKS from 37.8% to 41.2%, with additional OKS units purchased in August 2015.
Why 63% of Analysts Call Enbridge Energy Partners a ‘Buy’
According to analysts surveyed by Bloomberg, the median target price for Enbridge Energy Partners (EEP) for the next year is $26.6.
How Enbridge Energy Partners’ Valuation Compares to Its Peers’
Enbridge Energy Partners’ (EEP) forward EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) multiple is 10.7x.
Is Enbridge Energy Partners’ Leverage a Concern?
Enbridge Energy Partners’ (EEP) debt-to-equity ratio is 1.1x. How do other midstream companies compare?
What Lies Ahead for Enbridge Energy Partners?
In this series, we’ll analyze Enterprise Energy Partners’ price targets, segment-by-segment performances, leverage, distributable cash flow, capital expenditure, and distribution growth.
What Drove ONEOK’s 3Q16 Earnings Growth?
ONEOK (OKE) reported its 3Q16 results on November 1, 2016, after the market closed. Its 3Q16 analyst-adjusted earnings before interest, tax, depreciation, and amortization rose 14.4% from 3Q15.
How Much of ONEOK’s Earnings Are Really Fee-Based?
ONEOK has been making focused efforts to increase its fee-based earnings through contract restructuring in ONEOK Partners’ Natural Gas Gathering and Processing segment.
ONEOK’s 3Q16 Earnings Expected to Rise More Than 20%
ONEOK and ONEOK Partners are scheduled to report their 3Q16 results on November 1, 2016. Analysts expect OKE’s 3Q16 earnings before interest, tax, depreciation, and amortization to be ~$457 million.
One-Third of Rejected US Ethane Is on ONEOK’s System
According to ONEOK (OKE), nearly one-third of all US ethane being rejected is on ONEOK Partners’ (OKS) NGL (natural gas liquid) system.
ONEOK Is Expected to Post Higher 2Q16 Earnings
ONEOK (OKE) and ONEOK Partners (OKS) are scheduled to report their 2Q16 results on August 2. Here’s what you need to know.
What Do Institutional Investors Think about Phillips 66 Partners?
Nearly 70% of Phillips 66 Partners’ (PSXP) floating shares are currently held by ~195 institutional investors.
Targa Resources Is Up 47% in 2016: What’s Next?
Targa Resources (TRGP) has risen 47% so far in 2016. In comparison, the Alerian MLP ETF (AMLP) is up 3% in 2016.
How Does ONEOK Partners’ Valuation Compare to Its Peers’?
ONEOK Partners is trading at a trailing-12-month enterprise value to earnings before interest, tax, depreciation, and amortization multiple of 12.2x.
Why Did the Frac Spread Keep Rising Last Week?
The Henry Hub–Mont Belvieu fractionation spread rose for the third consecutive week to $14.5 per barrel last week.
62.5% of Analysts Rate ONEOK a ‘Hold’ ahead of 1Q16 Earnings
Of the analysts surveyed by Bloomberg, 25% rated ONEOK (OKE) a “buy” and 62.5% rated it a “hold.”
Why Is ONEOK Outperforming Peers in 2016?
ONEOK (OKE) has generated total returns of 32% so far in 2016.
How Will ONEOK’s Segments Perform in 1Q16?
ONEOK’s Natural Gas Liquids segment contributed 77% to the company’s 4Q15 EBITDA (earnings before interest, tax, depreciation, and amortization).
What Will Drive ONEOK’s 1Q16 Earnings?
ONEOK (OKE) and ONEOK Partners (OKS) are scheduled to report their 1Q16 results on May 3, 2016.
Behind the Fractionation Spread: Key Investor Data
The Henry Hub-Mont Belvieu fractionation spread rose to $11.53 per barrel in the week ending March 25. The spread was $11.37 per barrel the previous week.
Why Did ONEOK Stock Fall 1.8% in After-Hours Trading?
ONEOK (OKE) reported its 4Q15 results after the Market closed on February 22, 2016. OKE fell 1.8% in after-hours trading. This was the initial price reaction after the earnings announcement.
Why ONEOK’s Gas Gathering, Processing Segment Reported 4Q15 Loss
ONEOK’s Natural Gas Gathering and Processing segment contributed only 6% to the company’s 4Q15 EBITDA. The segment’s EBITDA decreased due to non-cash impairment charges.
Higher Natural Gas Liquids Volumes Drive ONEOK’s 4Q15 Growth
ONEOK Partners’ (OKS) EBITDA growth in 4Q15 was driven by increased NGL (natural gas liquids) gathering and fractionating volumes from recently connected natural gas processing plants.
SEP Trades at a Lower Yield than Its Historical Average
Spectra Energy Partners trades at a forward distribution yield of ~5.7%. This is lower compared to its five-year average forward distribution yield of 6.2%.
ONEOK Focuses on Existing Businesses to Drive Growth
ONEOK has suspended capital expenditures for certain natural gas– related projects. It intends to resume work on these projects when “market conditions improve.”
Natural Gas Liquids Segment Drives ONEOK’s EBITDA Growth
After the separation of ONE Gas (OGS) and the closure of ONEOK’s (OKE) energy services segment in 2014, OKE now operates as a pure-play general partner of ONEOK Partners (OKS).
10-Year Treasury and MLP Yields Diverged
In the long term, if Treasury yields fall and the spread doesn’t change, energy MLP yields should also fall. This could mean a rise in MLP unit prices.
55% of Analysts Rated Enbridge Energy Partners a “Buy”
Of the analysts surveyed by Bloomberg, 55% rated Enbridge Energy Partners (EEP) a “buy,” and 45% rated it a “hold.” None of the analysts rated it a “sell.”
Key Takeaways from Enbridge Energy Partners’ 3Q15 Results
In this series, we’ll look at Enbridge Energy Partners’ revenue and EBITDA growth in 3Q15, the performance of its segments, and its distribution growth.
Will 3Q15 Results Change Enbridge Energy Partners’ Valuation?
Enbridge Energy Partners’ forward EV/EBITDA multiple is 11.3. The forward ratio is based on the estimates for the current fiscal year’s EBITDA.
Why Have OKS’s Distributions Been Flat for Last Three Quarters?
On October 21, 2015, ONEOK Partners (OKS) declared a quarterly cash distribution of $0.79 per unit. OKS’s distributions remained flat for the third consecutive quarter.
Will ONEOK Partners Match Higher 3Q15 Earnings Estimates?
Analysts expect ONEOK Partners’ (OKS) 3Q15 EBITDA to be 7% lower than its 3Q14 EBITDA and 15% higher than its 2Q15 EBITDA. ONEOK Partners missed its 2Q15 EBITDA estimates by 2%.
Will 3Q15 Results Change ONEOK Partners’ Valuation?
ONEOK Partners’ (OKS) forward distribution yield of 9.6% is 125 basis points higher than its peer average. It’s calculated as estimated distribution per share divided by market price per share.
Natural Gas Liquids Segment May Drive OKS’s 3Q15 EBITDA Growth
The acquired West Texas LPG (liquid petroleum gas) pipeline system in the Permian Basin should continue to contribute to OKS’s Natural Gas Liquids segment’s transportation volumes in 3Q15.
Will ONEOK Partners Miss 3Q15 Consensus Revenue Estimates Again?
The consensus revenue estimate for ONEOK Partners (OKS) for the third quarter of 2015 is $2.6 billion. OKS missed revenue estimates by 23% in the second quarter of 2015.
ONEOK Partners: 2015 Returns Exceed MLP Average
In this series, we’ll take a look at ONEOK Partners’ revenue and EBITDA estimates for 3Q15 before its anticipated earnings release on November 3, 2015.
Kinder Morgan Misses 3Q15 Revenue and Earnings Estimates
The 3Q15 consensus revenue estimate for Kinder Morgan was $3.8 billion, while the company’s actual revenue stood at $3.7 billion, a miss of 2.0%.
Kinder Morgan 3Q15 Earnings Release: Key Highlights for Investors
Kinder Morgan reported its 3Q15 earnings on October 21, 2015. Its 3Q15 revenue fell to $3.7 billion from $4.3 billion in the third quarter of last year.
US Natural Gas Inventories Up Less than Expected
US natural gas inventories in storage rose by 81 Bcf (billion cubic feet), causing inventories to rise to 3,814 Bcf in the week ending October 16.
Enbridge Energy Partners’ Returns in 2015 Lag MLP Sector Returns
Enbridge Energy Partners will report its third quarter 2015 results on November 2, 2015. It generated a total return of -27.3% since the start of 2015.
Why Are Enbridge Energy Partners’ 3Q15 Revenue Estimates Low?
Enbridge Energy Partners’ natural gas assets are primarily located in Texas and Oklahoma, and are owned by Midcoast Energy Partners (MEP).
Will Williams Partners’ Distributions Stay Flat in 2015?
According to Williams Partners’ (WPZ) management, distributions are expected to stay flat for the rest of 2015.
Why Have Analysts Increased Williams Partners’ EBITDA Estimate?
Wall Street analysts have increased WPZ’s 3Q15 EBITDA estimates despite the company’s significant misses in recent quarters.
Prices Fall on Higher-than-Expected US Natural Gas Inventories
After the 100 billion cubic feet increase in the week ended October 9, 2015, natural gas inventories were ~13.6% higher than last year’s levels.
US Natural Gas Inventories Beat Expectations yet Prices Rose
On Thursday, September 24, 2015, the EIA (U.S. Energy Information Administration) published its “Natural Gas Weekly Update” for the week ended September 18.
Antero Midstream Rose on Dropdown Acquisitioin Annoucement
Antero Midstream Partners (AM) was the top gainer among midstream MLPs at the end of trading on Friday, September 18. It rose 3.65%.